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Microsoft reveals more job cuts to come

The software vendor has used its annual report to reveal how important partners are to its business and some of the threats it faces

Microsoft has underlined just how much partners matter to its future outlining their importance in its annual report.

The vendor restated its cloud, personal computing and business productivity ambitions but revealed that it faced plenty of competition and needed the channel to secure its future ambitions.

"We believe the breadth of our products and services portfolio, our large global partner and customer base, our growing ecosystem, and our ongoing investment in innovation position us to be a leader in these areas and differentiate ourselves from competitors," stated the vendor in its 10-K report.

But things are not all rosy in the Microsoft garden and the firm used the report to reveal further job losses.

"We periodically evaluate how to best deploy the company’s resources. In the fourth quarter of 2016, management approved restructuring plans that would result in job eliminations, primarily across our smartphone hardware business and global sales," the firm stated. 

"In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017," it added.

The filing also gave some sense of the feelings that Microsoft has towards some competitors that undercut it and ape the features of its operating system. There are also references to the ongoing battle with piracy.

"Protecting our global intellectual property rights and combating unlicensed copying and use of our software and other intellectual property is difficult," it added "While piracy adversely affects U.S. revenue, the impact on revenue from outside the U.S. is more significant, particularly in countries where laws are less protective of intellectual property rights." 

There is also a sense of the competition with developers with the software vendor doing its best to try and ensure ISVs keep producing for its platform.

But these are the usual caveats that the firm has to give to the investment community and overall the sense is that its strategy and the success in adoption rates of Windows 10 along with the cloud strategy are working for the vendor.

Read more on Salesforce Management

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I can see more in the future as well. More often I see people leaning towards open source applications. That has to hurt Microsoft's bottom line which means more cuts. Those cuts won't be at the top either.
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